Tamweel Aviation Finance (TAF), a new and integrated financing platform offering turnkey alternative financing solutions to airlines and aircraft leasing companies, has been established by Novus Aviation Capital in partnership with Development Bank of Japan Inc. (DBJ) and Airbus. The new enterprise has been set up to facilitate the funding of aircraft acquisitions, providing secured junior and mezzanine loans to airlines for all Airbus aircraft, with a focus on the twin-aisle segment, including the A380. TAF will be managed by Dubai-based Novus Aviation Capital.
The team responsible for the organization and management of TAF is led by Novus Executive Vice Presidents Mounir and Hani Kuzbari. Mounir Kuzbari oversees financing strategy while Hani Kuzbari oversees the investment side of the business.
“At Novus we are extremely delighted to be partnering with and investing alongside two prestigious organizations such as DBJ and Airbus on this exciting venture. We see great synergies and common vision with the partners which are key components to the success of this joint venture”, said Mounir Kuzbari. “TAF has been set up in response to a rapidly changing aircraft financing environment, with new investors and lenders becoming attracted to the stable and attractive returns that have been generated by commercial aircraft assets over an extended period. These developments coincide with economic and environmental pressures that are driving demand from the world’s airlines for new aircraft and resulting in record order backlogs at the major manufacturers. Values of new deliveries scheduled for 2013 alone are expected to exceed US$100bn, placing significant financing requirement on airlines and leasing companies.”
“DBJ, having developed its aircraft financing business globally since 2011, came to realize a huge potential of mezzanine finance in this space. Such a view, coupled with DBJ’s strong balance sheet and its corporate strategy to broaden the portfolio of middle risk products led DBJ to reach an agreement with Novus and Airbus on set-up of this venture. TAF will provide entirely new solutions for airlines, and DBJ is very pleased to have TAF established in partnership with Airbus and Novus” said Masao Masuda, Director at DBJ.
“We are pleased to be part of the start of Novus’ venture, together with our valued partner DBJ. TAF will bring additional liquidity, particularly on long range aircraft, to our customer airlines whose order books continue to grow.” said Nigel Taylor, Airbus Senior Vice President Customer, Project and Structured Finance.
Hani Kuzbari added that TAF’s role is compatible with a range of formats, including commercial senior financings, operating leases, capital markets and tax structures. “This venture was largely initiated based on feedback received from our airline clients looking for new products with higher advance rates to supplement traditional financings currently available for new aircraft deliveries. TAF will be able to fulfill airlines’ needs for higher Loan-to-Values. We believe that an alternative funding vehicle such as TAF will be well received by the market and we hope to announce our first transaction before the end of this year” he said.
About Novus Aviation Capital:
Novus Aviation Capital is an independent privately held aircraft leasing and financing platform, focused on investing in commercial aircraft assets. Established over 19 years ago, the Novus team operates out of its four global offices in the Middle East, Europe and Asia. Novus currently co-owns and manages aircraft related investments in excess of a $1.5bn. Novus offers airlines and aircraft owners comprehensive aircraft funding solutions and provides tailor-made investment products to investors. Novus’s aircraft portfolio includes A320/330/A340s as well as B737-800 and B747/B777s.
www.novus.aero // twitter: @NovusAviation
About Development Bank of Japan Inc. (DBJ):
DBJ is a wholly Japanese government owned financial institution with a long history in providing financing to the aviation sector. The focused aviation team set up in 2011 to enhance DBJ’s aircraft financing activities globally has quickly grown to become recognized as one of the up and coming financiers in aviation circles, arranging deals across Asia, the Middle East, Europe and the Americas. In the last fiscal year alone, DBJ arranged financing for airlines and aircraft lessors on around 20 transactions totaling roughly $1bn.
Airbus is a leading aircraft manufacturer with the most modern and fuel-efficient family of airliners, ranging in capacity from 100 to more than 500 seats. Airbus has sold over 13,200 aircraft to more than 500 customers and operators worldwide and has achieved more than 8,000 deliveries since the first Airbus aircraft entered service. Headquartered in Toulouse, France, Airbus is an EADS company.